For many recent buyers, the costs of homeownership are already pushing them further into debt.
A national survey from Clever Real Estate found that 21% of Americans who bought a home in the past year have taken on additional debt since moving in. That includes new credit card balances, personal loans, or other forms of borrowing used to manage costs incurred after the purchase.
“Many buyers are financially unprepared for the unexpected and hidden costs of homeownership,” says Jaime Seale, a senior writer at Clever Real Estate. “Inevitably, recent buyers will have an expensive repair they can’t cover with their meager savings, and they’ll be forced to turn to credit cards or personal loans.”
The same survey found that 65% of buyers regret buying their home. Nearly three in five say they’re financially stretched, and 40% report making major lifestyle changes just to stay afloat. That includes cutting everyday spending or putting off financial goals.
Regret came early for many buyers
These concerns didn’t take long to surface.
More than a quarter of respondents said they had second thoughts immediately after their offer was accepted. Another 28% said the buying process was harder than they expected, pointing to limited inventory and fast-moving listings as key stressors.
Those pressures may have influenced how buyers chose their homes. The survey found that many prioritized cosmetic features over structural necessities:
- 33% said an updated kitchen was important
- 30% prioritized plumbing
- 28% looked for updated electrical wiring
- 61% said a strong foundation wasn’t a priority
- 63% didn’t prioritize a new roof
Those last two are among the most expensive parts of a home to repair, yet they didn’t make the list for most buyers.
Skipping inspections or deferring upgrades may save time during the purchase process, but those choices can carry significant costs later. Debt.com president Don Silvestri says unexpected home repairs are a common reason people fall into debt.
“Installing a new HVAC system can cost $10,000,” Silvestri wrote. “A water heater can run a couple of thousand dollars.”
The trade-offs didn’t always work out
The Clever survey also revealed that 46% of buyers both made and received concessions to close the deal. While 21% received a price reduction, 24% agreed to buy the home as-is, often waiving their right to ask for repairs.
That may have helped them land a home in a competitive market, but for some, the financial burden began almost immediately afterward.
Between rising interest rates, high home prices, and maintenance surprises, many new homeowners are now relying on debt to keep up. That can quickly lead to even more strain, especially when credit card balances grow faster than household income.
If you’ve taken on more debt after buying a home, you’re not alone. Call Debt.com for your free debt analysis with a certified financial professional. They’ll review your budget and debt to provide the best solution for your unique situation.
